Many young Brits are putting their financial futures at risk by trying to fund a fashionable lifestyle that is beyond their means, it has been claimed.

Cliff D’Arcy, a personal finance commentator, has stated that incessant overspending is to blame for increasing debt among young people in Britain.

He has advised ways for consumers to avoid falling into the debt trap. “Try and get more bang for your bucks,” Mr D’Arcy explains. “Instead of going out on impulse and buying, sit down and try and make the most of your money. Try and shop around online – you can get 30 to 50 per cent discounts – haggle, bargaining, look around rather than just buying the first thing you see. Maybe you don’t need it today and next week and at half the price, it’ll be better.”

He continues, “Two-thirds of young people have admitted that they are still trying to clear credit card debts that they built up two years ago. This ‘Bling-itis’ is edging them towards bankruptcy.”

His observations follow recent research released by mobile banking firm Monilink that found that more than one in five young people prefer to spend their money on treats rather than saving it. Additionally, 56 per cent believe that they are judged on their appearance and possessions, while more than one in five (22 per cent) find repaying debts such as loans and credit cards a strain.

Head of personal finance at the Motley Fool David Kuo has said that applying for a debt consolidation loan can be instrumental in putting those with much borrowing back on the road to financial recovery.

This news comes on the back of a warning that as many as 800,000 people in the next twelve months will appeal for bankruptcy, double those of the last 12 months.

This has meant in increase for such companies as IVAs (Individual Voluntary Arrangements) that guarantee the client to be “debt free” in 60 months and provide protection against court action and charging orders against the home while settling debts with less damage to their credit rating and employment prospects than bankruptcy.